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2021-12-31-accounts

Charity number: 275919

THE EXILARCH'S FOUNDATION TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE EXILARCH'S FOUNDATION

CONTENTS

Pages
Legal and administrative information 1
Trustees' Report 2-7
Independent auditors' report 8-11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15-27

THE EXILARCH'S FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees: D.A. Dangoor CBE DL(Exilarch) M.J. Dangoor E.B. Dangoor Charity Number: 275919 Address: 4 Carlos Place Mayfair London W1K 3AW Auditors: Wilson Wright LLP 5 Fleet Place London EC4M 7RD Bankers: Barclays Bank plc National Westminster Bank 1 Churchill Place Kensington Royal Gardens London E14 5HP 55 Kensington High Street London W8 5ZG Solicitors: Ince Gordon Dadds LLP Farrer & Co LLP Aldgate Tower, 2 Lenman Street 66 Lincolns Inn Fields London E1 8QN London WC2A 3LH Investment manager: Quilter Plc Senator House 85 Queen Victoria Street London EC4V 4AB

1

THE EXILARCH'S FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their report and the a udited financial statements of The Exilarch’s Foundation for the year ended 31 December 2021.

The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Reference and administrative information

The Charity was established by a Trust Deed dated 2 April 1978. Its registered charity number is 275919 and its principal office is at 4 Carlos Place, London W1K 3AW,

Aims and purposes

The Charity is established to carry out all charitable objects, in any part of the world, within the legal meaning of the term, at the absolute discretion of the trustees. The trustees are constantly considering potential new charitable opportunities.

Governance and management

The Charity is governed by its Trust Deed dated 2 April 1978.

The power of appointment of new or additional trustees and the choice of successor is vested exclusively in the Exilarch, D.A. Dangoor CBE. No formal policies have been adopted for the induction and training of trustees.

The trustees during the year and at the date of this report were as follows:-

The trustees are legally responsible for the overall management and control of the charity and meet regularly throughout the year.The investment committee (consisting of D.A. Dangoor CBE DL and M.J. Dangoor) reviews the charity's investments and investment policies, taking professional ad vice where appropriate.

R.D. Dangoor, sadly passed away on 5 April 2022. He was a founding trustee of The Exilarch’s Foundation in 1978, which has distributed large amounts to good causes over many years. His benevolence and tireless hard work for good causes will be greatly missed by all who came into contact with him.

THE EXILARCH'S FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Public Benefit

The Charities Act 2011 requires all charities to meet the legal requirement that its aims are for the public benefit. The Charity Commission in its Charities and Public Benefit guidance states that there are two key principles to be met in order to show that an organisation’s aims are for the public benefit: firstly, there must be an identifiable benefit or benefits and secondly, that the benefit must be to the public or a section of the public. The trustees consider that they have complied with Section 17 of the Charities Act 2011 including the guidance “public benefit: running a charity (PB2)” .

Aims, objectives, activities and achievements during 2021

Aim 1 - Iraq

The trustees have continued to keep their long-term sights on the eventual re-establishment of a Jewish community in Iraq through the setting up of educational and religious institutions. The trustees ’ strategy for achieving this principal aim, for so long as the security position in Iraq remains sufficiently unsettled for it to be impossible for Jews to resettle in significant numbers in Iraq and therefore impossible for the Charity to acquire land and/or begin construction on projects in Iraq, is to maintain appropriate levels of reserves and to monitor developments in Iraq with the assistance of a network of contacts throughout the Middle East, members of the former community of Iraqi Jews and academics worldwide, and public sources of information. In consultation with professional advisers and the Charity Commission, the trustees have undertaken to carry out regular assessments of when the re-establishment of the Jewish community and large-scale expenditure by the Charity from this fund might become possible.

The Charity held a designated fund of £10 million (2020: £10 million) for the purpose of assisting the setting up of educational and religious institutions in a future re-established Jewish community in Iraq.

The trustees continue to take note of:

The trustees are keeping the designation of funds for this purpose under review.

THE EXILARCH'S FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Aim 2 – other charitable purposes

Alongside their above objective, the trustees have during 2021 sought to identify effective ways of deploying the Charity’s res ources so as to deliver maximum impact without adversely affecting its capacity to achieve its principal objective.

Monotheism

The trustees continue to explore ways to take forward the recommendations contained in the report commissioned jointly with Birkbeck College on the feasibility of creating an institute for ethical monotheism which will include academic activities of research, teaching and publication, and practical engagement with social and public ethical issues.

Major grants

During the year a grant of £1.7m was made to The Royal United Services Institute for Defence and Security (RUSI), £0.9m to Bevis Marks Synagogue Heritage Foundation, £0.2m to Jewish Homes Emergency, £0.3m to Side by Side (School) Ltd, £0.3m to Imperial College of Science, Technology and Medicine and £0.28m to the Women’s Interfaith Network . Further details of grants can be found in note 7 to the accounts.

Grants for educational institutions

Funding for educational institutions in the UK has been continued throughout 2021 and into 2022.

The academic results achieved at Westminster Academy have continued to improve with more than 77% of students achieving grades 9-4 in each of the core subjects of English, Maths and Science, (63% achieving grades 9-5) with a large proportion of these not having English as a first language.

The Academy students continue to achieve good IB results and in 2022, obtained an average of 36 points out of 45 (global average circa 31/45). Five students of the Academy achieved 40+ out of 45 points.

The Charity continues to support the London Centre for Languages and Culture which was established by Pembroke College, Oxford.

Plans for future periods

The trustees resolved that whilst they would continue to consider other applications for funding made to the Charity, they wished to continue to address the following areas over the coming years.

The advancement of education and the Jewish religion in Iraq

The trustees have resolved to retain the fund designated for assisting in the re-establishment of a Jewish community in Iraq through the setting up of educational and religious institutions. They will review the level of funds designated for this large- scale project annually, and as part of the Charity’s ongoing monitoring of the situation consider whether continued retention of the funds remains appro priate.

As reported previously, the trustees believe that it is to the advantage of the Charity to continue to accumulate these funds in order that the Charity may undertake the large-scale projects that will be required when the Jewish community returns to Iraq.

THE EXILARCH'S FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Educational projects and scholarships

The trustees anticipate continuing their support of the Westminster Academy, of which the Charity is the Sponsor, and which Mr David Dangoor CBE DL is also a trustee. Grants amounting to £116,317 (2020: £98,585) were awarded to Westminster Academy during the year.

Universal Monotheism

The trustees will continue to explore whether the Charity’s funds might beneficially be used to support the establishment of a new university and in particular the scope for the Charity to allocate additional funds for this project so as to make a meaningful contribution to the estimated £50 million costs involved.

Financial review

Principal sources of income

During 2021 the Charity received investment income and interest of £7m (2020: £6.5m). The majority of this took the form of rental income from commercial properties.

Principal risks and uncertainties

The trustees have given consideration to the principal risks and uncertainties to which the Charity is exposed. The Charity holds a significant investment property portfolio and any substantial decrease in property values or a substantial reduction in the ratio of tenanted properties to vacant ones would impact the Charity. The trustees monitor the impact of these risks and have concluded that there are sufficient reserves within the Charity to accommodate these.

Reserves Policy

The trustees are continuing to develop and refine the charity's reserves policy, taking into account both long term and short-term projects, and monitor reserves on an ongoing basis.

The charity now holds an endowment fund of £63.86m (2020: £64.03m) and, of the other funds it holds, £10m remains designated for the specific purpose of assisting the setting up of educational and religious institutions in a future re-established Jewish community in Iraq. £5m of funds previously designated for an affordable housing project for teachers at the Westminster Academy were transferred back to general funds at the year end, as the project was no longer considered viable. At the balance sheet date free reserves amounted to £20.7m (2020: £14.6m).

It is the Charity's policy to retain reserves of a minimum of twelve months total expenditure excluding grants.

At the balance sheet date, the charity had net current liabilities of £2.4m (2020: net current assets of £1.8m). However, as noted below an investment property was sold post year end for £6.6m plus costs, therefore generating significant cash reserves to cover total expenditure for a minimum of twelve months.

THE EXILARCH'S FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Investment Policy, Performance and Objectives

The Charity's policy is to invest primarily in real estate and donations have been received on that basis. The trustees consider these investments to be secure both in the medium and long term and their performance in terms of capital growth and income is expected to compare well to the rest of the market. The Charity is also exploring some non-property investments.

The Charity's investment properties were independently revalued at the balance sheet date. The resultant unrealised losses in the year of £0.5m (2020: £0.2m) are considered to mirror the current market conditions of the property sector in the UK.

Impact of COVID-19

In 2020, the WHO declared a global COVID-19 pandemic and restrictions were put in place in the UK to contain the spread of this disease. The effects of the COVID-19 pandemic and subsequent lockdowns have impacted the income of the Foundation in 2021 as reflected in these financial statements. In some instances, the charity has continued to provide rent concessions and extended payment periods, to assist lessees to remain viable in this difficult period.

The trustees continue to monitor the charity’s reserves , which are significant, on an ongoing basis and have regard to these prior to entering into grant commitments.

Events after the reporting date

The charity sold an investment property in April 2022 for £6.6m plus costs. The property was valued at £6.6m as at 31 December 2021 and is included within these accounts.

Statement of Trustees ’ Responsibilities

The trustees are responsible for preparing the Trustees ’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

THE EXILARCH'S FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approval

This report was approved by the trustees on ……………………………… 31 October 2022 and signed on their behalf.

Exilarch

D.A. Dangoor CBE DL

THE EXILARCH’S FOUNDATION

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE EXILARCH’S FOUNDATION

Opinion

We have audited the financial statements of The Exilarch’s Foundation (“the charity”) for the year ended 31 December 2021, which comprise the statement of financial activities, the balance sheet, the statement of cashflows, and notes to the financial statements, including a summary of significant accounting policies. The financial framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

THE EXILARCH’S FOUNDATION

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE EXILARCH’S FOUNDATION

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with that Act and relevant regulations made or having effect thereunder .

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

THE EXILARCH’S FOUNDATION

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE EXILARCH’S FOUNDATION

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charity and the charity sector, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with charity regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities (Accounts and Reports) Regulations 2008 and Charities Act 2011. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the auditors included:

There are inherent limitations in the audit procedures described above, and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

THE EXILARCH’S FOUNDATION

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE EXILARCH’S FOUNDATION

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are re quired to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Wilson Wright LLP Chartered Accountants and Statutory Auditors 5 Fleet Place London EC4M 7RD Date: 31 October 2022

Wilson Wright LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE EXILARCH'S FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Funds
Notes
2021
£
Income from:
Investments
4
7,023,142
Other income
5
5,268
Total income
7,028,410
Expenditure on:
Cost of raising funds
6
292,011
Charitable activities
7
6,257,770
Total expenditure
6,549,781
Net income
478,629
Net gains/(losses) on
investments
14.1,14.3
614,301
Net movement in funds
1,092,930
Reconciliation of funds
Total funds brought forward
37,864,159
Total funds carried forward
38,957,089		 Expendable
Endowment
2021
£
-
-
-
-
-
-
-
(173,862)
(173,862)
64,029,853
63,855,991		 Total
Funds
2021
£
7,023,142
5,268
7,028,410
292,011
6,257,770
6,549,781
478,629
440,439
919,068
101,894,012
102,813,080		 Total
Funds
2020
£
6,504,437
-
6,504,437
188,575
3,969,902
4,158,477
2,345,960
1,518,880
3,864,840
98,029,172
101,894,012

-12-

THE EXILARCH'S FOUNDATION

BALANCE SHEET AS AT 31 DECEMBER 2021

Notes
2021
2021
£
£
Fixed assets
Investments
10.1
111,801,435
Current assets
Debtors
11
1,596,235
Cash at bank
2,211,496
3,807,731
Creditors:amounts falling due
within one year
12
(6,206,032)
Net current (liabilities)/assets
(2,398,301)
Creditors:amounts falling due after
more than one year
13
(6,590,054)
Total net assets
102,813,080
Funds of the charity
Expendable endowment fund
14.1
63,855,991
Unrestricted funds:
Designated
14.2
18,250,000
General
14.3
20,707,089
Total funds
102,813,080		 2020
2020
£
£
106,777,151
2,027,046
4,723,796
6,750,842
(4,978,998)
1,771,844
(6,654,983)
101,894,012
64,029,853
23,250,000
14,614,159
101,894,012		 2020
2020
£
£
106,777,151
2,027,046
4,723,796
6,750,842
(4,978,998)
1,771,844
(6,654,983)
101,894,012
64,029,853
23,250,000
14,614,159
101,894,012
101,894,012
64,029,853
23,250,000
14,614,159
101,894,012

The financial statements were approved by the board of trustees on ............. and signed on their behalf by:31.10.2022

D.A. Dangoor CBE DL Exilarch

-13-

THE EXILARCH'S FOUNDATION

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Net cash used in operating activities
16
Cash flows from investing activities
Interest received
Dividends and rental income from investments
Purchase of investment properties
Purchase of other investments
Proceeds on disposal of investments
Proceeds from sale of investment properties
Net cash flows from investing activities
Change in cash and cash equivalents in
the year
Cash and cash equivalents at the beginning of
the year
Cash and cash equivalents at the end of
the year
2021
2021
2020
2020
£
£
£
£
(4,860,124)
(7,822,068)
371
7,759
7,022,771
6,568,359
(5,588,117)
(7,697,533)
(1,814,316)
(463,138)
358,430
139,993
2,368,685
8,679,846
2,347,824
7,235,286
(2,512,300)
(586,782)
4,723,796
5,310,578
2,211,496
4,723,796
2021
2021
2020
2020
£
£
£
£
(4,860,124)
(7,822,068)
371
7,759
7,022,771
6,568,359
(5,588,117)
(7,697,533)
(1,814,316)
(463,138)
358,430
139,993
2,368,685
8,679,846
2,347,824
7,235,286
(2,512,300)
(586,782)
4,723,796
5,310,578
2,211,496
4,723,796
(586,782)
5,310,578
4,723,796

-14-

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Status

The Exilarch's Foundation is an unincorporated charity governed by a Trust Deed and is registered with the Charity Commission for England and Wales. The address of the registered office is 4 Carlos Place, Mayfair, London, W1K 3AW.

2 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2.1 Basis of preparation of accounts and assessment of going concern

The financial statements(accounts) have been prepared under the historical cost convention except for investments which have been included at fair value and in accordance with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 , the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts have been prepared to give a " true and fair " view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a " true and fair view". This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Exilarch's Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The financial statements are prepared in pounds sterling and rounded to the nearest pound.

2.2 Going concern

The financial statements have been prepared on a going concern basis as the Board of Trustees consider there are no material uncertainties existing that may cast significant doubt as to its ability to continue as a going concern.

At the balance sheet date, the charity had net current liabilities of £2. � m (2020: net current assets of £1.8m). However, an investment property was sold post year end for £6.6m plus costs, therefore generating significant cash reserves to cover total expenditure for a minimum of twelve months, in line with the charity's reserves polcy.

The Board of Trustees has considered the continuing uncertainty arising from the COVID-19 pandemic and does not believe this to have a material impact on going concern.

2.3 Consolidated and financial statements

Consolidated financial statements for the Charity and its wholly owned subsidiary, Edufilms Limited have not been prepared as the subsidiary was immaterial. As such the accounts reflect only the transactions and balances of the Charity.

2.4 Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

THE EXILARCH'S FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2 Accounting policies (continued)

Donations, are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacy gifts are recognised at the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executors to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when there has been a grant of probate, the executors have established there are sufficient assets in the estate to pay the legacy and the conditions attached to the legacy are either within the control of the charity or have been met. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Rental income arising from operating leases on investment properties is accounted for on a straight line basis over the lease term. Incentives for lessees to enter into lease agreements are spread evenly over the lease terms, even if the payments are not made on such a basis. Rental income is measured at the fair value of the consideration receivable excluding VAT.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

The provision of a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Trust that would permit the Trust to avoid making the future payment(s), settlement is probable and the effect of discounting is material. The discount rate used is the average loan rate in the year in which the grant award is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the Charity.

All expenditure is accounted for on an accruals basis. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2 Accounting policies (continued)

2.6 Allocation of support and governance costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees.

Governance costs and support costs relating to the cost of raising funds and expenditure on charitable activities have been apportioned on an equal basis. The allocation of support and governance costs is analysed in note 8.

2.7 Operating Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

2.8 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the closing rate of the month preceding that in which the transaction occurred. Exchange differences are taken to the Statement of Financial Activities.

2.9 Fund accounting

The following funds are held by the Charity:-

Expendable Endowment - these are capital funds which can only be converted into expendable income at the discretion of the Exilarch.

Unrestricted funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.

Realised and unrealised gains and losses on investments are allocated to the appropriate fund based on opening fund balances.

2.10 Fixed asset investments

Investment properties are measured initially at cost and subsequently at fair value at the reporting date. Valuation at fair value is made on an open market value basis by reference to market evidence of transaction prices for similar properties. Fair value adjustments are recognised as gains/losses on revaluation of fixed assets in the Statement of Financial Activities.

Investments in subsidiaries are measured initially at cost and subsequently at cost less impairment.

Other investments are initially measured at cost and subsequently at fair value at the reporting date. Realised and unrealised gains and losses are shown as gains/losses on investments in the Statements of Financial Activities. Net gains on other investments are recorded after deduction of management fees and foreign exchange movements.

2.11 Loans

Concessionary loans made in furtherance of the charity's objectives and repayable after more than one year are initially recognised at the amount paid with the carrying value adjusted in subsequent years to reflect repayments and any accrued interest. To the extent that the loan is assessed as irrecoverable, an impairment loss is recognised in the Statement of Financial Activities.

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2 Accounting policies (continued)

2.12 Financial instruments

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Additionally all financial assets and liabilities are classified according to the substance of the contractual arrangements entered into.

Basic financial assets, which include trade and other receivables and cash at bank are initially measured at transaction price (including transaction costs) and are subsequently carried at amortised cost.

Basic financial liabilities include trade payables, grants payable, other payables and deferred income are initially recognised at transaction price and subsequently carried at amortised cost.

3 Judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, the trustees are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

As disclosed in Note 10.1, the charity's investment properties have been valued on an open market value basis by an independent professional valuer, valuation of which is based on a number of assumptions including market conditions which prevailed at the balance sheet date.

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

4
5
6
a
b		 Investment income and interest
Unrestricted fund
Income from:-
Listed investments
Unlisted investments
Rent receivable
Interest on cash deposits
Other income
Unrestricted fund
Other income
Cost of raising funds
Unrestricted fund
Investment Property Costs
Rent payable
Rates
Insurance
Service charges
Repairs and maintenance
Legal and professional
Other costs
Publicity
Support costs (see note 8)
Investment management fees		 2021
£
-
-
7,022,771
371
7,023,142
2021
£
5,268
5,268
2021
£
102,260
13,985
3,262
31,082
(61)
47,135
197,663
25,500
54,187
14,661
292,011		 2020
£
158
117
6,496,403
7,759
6,504,437
2020
£
-
-
2020
£
104,853
-
271
20,821
(94,140)
67,353
99,158
33,800
55,617
-
188,575

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Expenditure on charitable activities
Grants
An analysis of grants is as follows:
Grants to institutions
SOCIAL WELFARE
Community development
Bevis Marks Synagogue Heritage Foundation
Royal National Institute for Deaf People (RNID)
Jewish Homes Emergency
The Faith and Belief Forum
Jewish Renaissance Magazine
Maccabi GBP
Chazak
The Spanish and Portuguese Jews Congregation
Jewish Lads and Girls Brigade
Jewish Leadership Council
Torah Action Life
Woolf Institute
Best Beginnings
Beit Halochem UK
University Jewish Chaplaincy
Centre for Jewish Life
Israel Philharmonic Foundation UK
Jewish Book Week
Norwood
The Board of Deputies of British Jews
The Covenant & Conversation Trust
Other General Grants & Donations
Ethics
Tony Blair Institute for Global Change
Global Leadership Foundation
Hospitals, Medical Education and Research
Cancer Research UK
Magen David Adom UK
The Royal Society of Medicine
Other
General		 2021
2021
2020
2020
£
£
£
£
900,000
-
210,000
-
200,000
-
127,527
106,000
130,365
-
75,181
20,000
60,000
20,000
50,440
175,000
50,000
50,000
50,000
200,000
45,000
-
42,028
72,028
40,000
30,000
25,000
25,000
20,000
20,000
15,000
15,500
17,500
-
-
20,000
-
20,000
-
30,000
-
180,000
491,441
315,238
50,000
-
5,000
10,000
-
1,200,000
-
72,500
80,621
-
-
35,000
24,890
3,958
2,709,993
2,620,224

7 Expenditure on charitable activities

a Grants

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

7 Expenditure on charitable activities (continued)

EDUCATION
University/College
Side by Side (School) Ltd
360,000
-
Imperial
College
of
Science,
Technology
and
Medicine
300,000
-
Women's Interfaith Network
277,400
148,535
Birkbeck University - Monotheism & Other Grants
125,000
-
Queen Mary University (BARTS)
124,000
-
British Schools Exploring Society
120,000
120,000
Westminster Academy
116,317
98,585
Imperial Health Charity
100,000
-
Yakar
80,000
40,000
Imperial College - Space Science & Engineering
Foundation
70,000
70,000
Dangoor Education
52,500
201,712
Institute for Jewish Policy Research
36,000
-
Association of Jewish Academics from Iraq
17,925
-
Weizmann Institute of Science / Weizmann UK
17,410
-
Middle East Education
-
15,000
Pardes Institute of Jewish Studies
3,666
-
Sephardi Voices USA
-
50,000
University Scholarship Scheme
(243,334)
-
Other
108,302
61,564
Sundry
RUSI - The Royal United Services Institute for
Defence and Security
1,750,000
250,000
The Royal Marines Charity Trust Fund
-
15,000
3,415,186
Carried forward
6,125,179



1,070,396
3,690,620

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

7 Expenditure on charitable activities
a
b		 Grants (continued)
Brought forward
Present value adjustment on commitments made in year
Present value of grant commitments made in year
7.e
Finance costs
Support costs (see note 8)
Other expenditure
Impairment loss on concessionary loan (see note 11(ii))		 2021
£
6,125,179
(361,667)
5,763,512
340,070
54,188
6,157,770
100,000
6,257,770		 2020
£
3,690,620
(100,872)
3,589,748
324,536
55,618
3,969,902
-
3,969,902
e
8		 Reconciliation to Grants Payable:
Commitments at 1 January 2021
Commitments made in year
Grants paid during the year
Finance costs
Difference on exchange
Commitments at 31 December 2021
Commitments at 31 December 2021 are payable as follows:-
Within one year (note 12)
After more than one year (note 13)
Support costs
2021
2021
2021
£
£
£
Total costs
Cost of
raising funds
Expenditure
on charitable
activities
Apportionment basis
50%
50%
Property expenses
14,786
7,393
7,393
Governance
Bank charges
1,132
566
566
Sundry expenses
2,583
1,291
1,292
Professional fees
53,944
26,972
26,972
Audit fees
35,930
17,965
17,965
108,375
54,187
54,188		 £
10,717,222
5,763,512
(5,798,450)
340,070
28,742
11,051,096
4,461,042
6,590,054
11,051,096
2020
2020
£
£
Total costs
Cost of
raising funds
50%
20,632
10,316
1,492
746
-
-
57,986
28,993
31,125
15,562
111,235
55,617		 £
12,576,787
3,589,748
(5,704,037)
324,536
(69,812)
10,717,222
4,062,239
6,654,983
10,717,222
2020
£
Expenditure
on charitable
activities
50%
10,316
746
-
28,993
15,563
55,618

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS ~~FOR THE YEAR ENDED 31 DECEMBER 2021~~

9 Trustees and employees

No remuneration was paid to the trustees or their connected persons for the year, nor were any expenses reimbursed to them (2020 - £nil).

There were no persons employed by the charity during the year or the previous year.

10.1 Fixed asset investments
Fair values
At 1 January 2021
Additions at cost
Disposals at carrying value
Gain on fair value adjustments
At 31 December 2021		 Shares in
UK Investment
Listed
group Other
Properties
Investments
undertaking investments
Total
£
£
£
£
£
105,045,000
165,056
1
1,567,094
106,777,151
5,588,117
-
-
1,814,316
7,402,433
(2,200,000)
-
-
(358,430)
(2,558,430)
(463,117)
48,648
-
594,750
180,281
107,970,000
213,704
1
3,617,730
111,801,435

The investment properties have been revalued at the reporting year end date on an open market value basis by an independent Chartered surveyor, Foxglove Property Limited and represent their fair value.

The charity is a leasehold tenant and pays a peppercorn rent to the freeholder of a property which is owned by a company in which the trustees are directors/shareholders with control of the company.

Listed investments are carried at fair value and represent investment in equities which are traded in quoted public markets, primarily the London Stock Exchange.

See note 10.2 for shares in group undertakings.

Analysis of investments at fair value
at 31 December 2021
UK investments
Ordinary shares:
Listed
Investments amounting to more than 5 per cent of the total portfolio:
Airlines Group SA
Entain plc		 2021
£
213,704
28,990
178,912		 2020
£
165,056
39,750
119,803

10.2 Interest in subsidiary

Interest in subsidiary
At cost less impairment
Balance at 1 January 2021 and at 31 December 2021
Details of the Charity's subsidiary:
Company
Country of
Class
Shares held
Edufilms Limited
England &
Ordinary
100%		 Shares in
group
undertaking
£
1
Principal
Educational

The results of Edufilms Limited for the year ended 31 December 2021 were as follows:

Capital and reserves
Profit for the year		 £
8,077
14,694

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

11 Debtors

Trade debtors
Amounts owed by subsidiary undertaking
Other debtors
Prepayments and accrued income		 2021
£
838,984
57,471
368,016
331,764
1,596,235		 2020
£
1,175,620
53,571
508,776
289,079
2,027,046

Amounts owed by subsidiary undertaking represent concessionary loans made to facilitate the production and distribution of educational films. There is no fixed repayment term and the amount does not bear interest.

Other receivables include Concessionary loans detailed as follows:

All three loans meet the criterion for treatment as programme related concessionary loans. D.A. Dangoor CBE DL is a director of the Westminster Academy.

12
Creditors: Amounts falling due within one year
Trade creditors
Taxation and social security
Other creditors
Accruals and deferred income
Grants payable
13
Creditors: Amounts falling due after more than one year
Grants payable		 2021
£
129,072
294,922
278,276
1,042,720
4,461,042
6,206,032
2021
£
6,590,054		 2020
£
42,087
211,785
217,621
445,266
4,062,239
4,978,998
2020
£
6,654,983

-2 � -

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

14.1 Expendable endowment fund
Expendable endowment fund
At 1 January 2021
(Loss)/gain on investments in the year
At 31 December 2021		 2021
£
64,029,853
(173,862)
63,855,991		 2020
£
63,210,356
819,497
64,029,853

The capital can only be converted into expendable income at the discretion of the Exilarch.

14.2 Designated funds

2021
£
At 1 January 2021
23,250,000
Transfers to general fund
(5,000,000)
At 31 December 2021
18,250,000
Purposes:
Assisting the setting up of educational and religious institutions in a future
re-established Jewish community in Iraq
Advancement of Universal Monotheism
UK Israel Healthcare Innovation Project		 2020
£
23,250,000
-
23,250,000
10,000,000
7,000,000
1,250,000
18,250,000

In the prior year, £5,000,000 was included within designated funds for an affordable housing project for teachers at the Westminster Academy. No such project has materialised as a potential developer has decided not to proceed. Accordingly, at the year end, the amount previously designated for this project has been transferred back to the general fund. See also note 11(i) for details.

14.3 General fund

At 1 January 2021
Incoming resources in the year
Gain on investments in the year
Resources expended in the year
Transfers from designated fund
At 31 December 2021		 2021
£
14,614,159
7,028,410
614,301
(6,549,781)
5,000,000
20,707,089		 2020
£
11,568,816
6,504,437
699,383
(4,158,477)
-
14,614,159

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15 Analysis of charity net assets between funds

Expendable Endowment
Unrestricted Funds:
Designated
General		 Investments
£
63,855,991
18,250,000
29,695,444
111,801,435		 Current
Assets Less
Liabilities
£
-
-
(2,398,301)
(2,398,301)		 Long Term
Liabilities
£
-
-
(6,590,054)
(6,590,054)		 Total
£
63,855,991
18,250,000
20,707,089
102,813,080

16 Reconciliation of net movement in funds to net cash used in operating activities.

Net movement in funds
Adjustments for:
Investment income and Interest
Profit on sale of fixed assets
Profit on sale of fixed asset investments
Decrease in valuation of fixed assets investments
Private equity investments fair value adjustments
Impairment of concessionary loan
Net decrease/(increase) in debtors
Net increase/(decrease) in current liabilities
Net increase/(decrease) in grants payable
Net cash used in operating activities		 2021
2020
£
£
919,068
3,864,840
(7,023,142)
(6,504,437)
(168,685)
(1,579,847)
(91,473)
-
414,469
295,861
(594,750)
(234,485)
100,000
-
169,291
(1,483,337)
1,081,224
(321,098)
333,874
(1,859,565)
(4,860,124)
(7,822,068)

THE EXILARCH'S FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

17 Analysis of changes in net debt

At 1 January 2021
Cashflow movements
At 31 December 2021		 2021
£
4,723,796
(2,512,300)
2,211,496		 2020
£
5,310,578
(586,782)
4,723,796

18 Operating lease arrangements

18.1 Lessor

At the balance sheet date the charity had future minimum rentals receivable under noncancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2021
£
7,283,236
25,753,944
36,841,035
69,878,215		 2020
£
6,961,177
24,425,018
41,750,103
73,136,298

18.2 Lessee

At the balance sheet date the charity had outstanding commitments for future minimum lease

Within one year
Between two and five years
In over five years
Financial commitments
Amounts contracted for but not provided:
Acquisition of fixed asset investments		 2021
£
102,260
409,040
7,210,004
7,721,304
2021
£
2,692,797		 2020
£
102,260
409,040
7,312,264
7,823,564
2020
£
2,341,198

19 Financial commitments

20 Related parties disclosures

During the year, grants amounting to £116,317 (2020: £98,585) were awarded to Westminster Academy, of which Mr David Dangoor CBE DL CBE is a trustee.

21 Events after the reporting date

The charity sold an investment property in April 2022 for £6.6m plus costs. The property was valued at £6.6m as at 31 December 2021 and is included within these accounts.

-2 � -